The education policy domain has attracted the concern of many writers in Tanzania. Although much has been documented on educational reforms, there is scarcity of scholarly works on the politics of higher education policy reforms. In light of this context, this article analyses power dynamics in higher education policy reform processes in Tanzania. Drawing from pluralist theory, elite interviews and documentary analysis, the study reveals that, although donors and the Government of Tanzania emerged as central actors in the policy process, with donors having overriding powers in shaping the policy direction and content especially in 1990s and 2000s, Tanzania higher education policy is an outcome of competing demands and interests as different actors struggle to negotiate space in country’s politics and policy process. The article recommends mitigation of overbearing external influence in higher education policy reforms.